Glossary
The words we use, in plain language.
Bitcoin has its own vocabulary. Here is what each term on our site means, in everyday words. If something is still unclear, ask us; that is what the first conversation is for.
- Address
- A string of letters and numbers that works like an account number for receiving Bitcoin. It is safe to share.
- Alternative backups
- Extra copies of what is needed to recover your money, kept in separate places, so you always have a plan B to move or access it.
- Bitcoin
- Digital money that runs on a worldwide network rather than through a bank. There will only ever be 21 million, it can be split into tiny amounts, and no government or bank can print more of it.
- Bitcoin Financial Framework
- Our written structure for your Bitcoin. It separates what you hold into spending, savings and long-term vault, with clear instructions for each.
- Blockchain
- The public record of every Bitcoin transaction, kept by thousands of computers around the world.
- Cold storage
- Keeping your keys completely offline, on a hardware wallet or on paper or metal backups. Best for long-term savings.
- Continuity Plan
- Our ongoing support, renewed each year: periodic reviews, updates when life changes, and a known contact for your family in an emergency.
- Custody
- In Bitcoin, custody simply means who holds the keys, and so who controls the money. It has nothing to do with children.
- Exchange
- A company where you can buy or sell Bitcoin with ordinary money. Useful for buying, but not the place to keep your savings, because the exchange holds the keys.
- Hardware wallet (signing device)
- A small device that keeps your keys offline, away from the internet. Used for Bitcoin you are keeping for the long term.
- Heir and executor
- An heir is someone who inherits. An executor is the person named in a will to carry out its wishes.
- Hot wallet
- An app on your phone or computer that is connected to the internet. Handy for small, everyday amounts, less suited to savings.
- Inheritance planning
- Arranging things so your Bitcoin reaches the people you choose, with backups, written instructions and trusted contacts in place.
- Key ceremony
- The guided session where your keys are created and checked, and your backups are made and verified. We guide; you hold the keys.
- Keys (private keys)
- The secret codes that give control of Bitcoin. Whoever holds the keys can move the money. That is why we never hold yours.
- Lightning
- A faster layer built on top of Bitcoin for small, instant payments, such as buying a coffee.
- Map of keyholders (quorum)
- Who holds which key, where each one is kept, and how many are needed to move the money. We design it around your family.
- Mining
- How new transactions are checked and added to the blockchain. Miners use computing power and are paid in Bitcoin for doing so.
- Multi-vendor multisig
- Multisig where the keys sit on devices from different makers, so a fault with one company’s product cannot put your money out of reach.
- Multisig
- A setup where more than one key is needed to move the money, for example any 2 of 3. No single key, person or place can move it alone.
- Passphrase
- An extra word or phrase added to your recovery words, like a second lock. It adds protection, but it must be recorded or remembered exactly.
- Proof-of-life protocol
- How time-delayed recovery works in practice. As long as you refresh your wallet within the time you set, your heirs’ key stays inactive. If you stop, it becomes usable.
- Recovery plan
- Clear written instructions, and the people involved, so your family can recover the Bitcoin safely.
- Recovery words (seed phrase)
- A list of 12 or 24 words that can rebuild your keys if a device is lost. Anyone who has these words can move your Bitcoin, so they are kept private and backed up carefully.
- Sats (satoshis)
- The smallest unit of Bitcoin. One Bitcoin is 100,000,000 sats.
- Self-custody
- Holding your own keys yourself, rather than leaving your Bitcoin with an exchange or another company. It is the only way to fully own it.
- Single point of failure
- Any one thing that, if lost, would cut off access to the money, such as one set of recovery words in one drawer, or one person who knows everything.
- Stewardship
- Looking after wealth carefully over a long time so it can be passed on in good order. It is what we do alongside you after setup.
- Time-delayed recovery
- A way for your heirs to gain access only after a period you choose has passed. Until then, nothing changes hands.
- Transaction
- Sending Bitcoin from one address to another. Once confirmed, it cannot be reversed.
- Trusted contact
- A person or firm, such as Schelling Point, who guides your family through recovery without ever having access to the money.